Which of the following presents assets in the correct balance sheet order?
A) Cash, land, accounts receivable, equipment
B) Marketable securities, equipment, prepaid insurance, inventory
C) Cash, inventory, equipment
D) Accounts receivable, buildings, inventory, land
E) Buildings, prepaid expenses, inventory, equipment

Question

Quizplus · Accepted Answer

Assets on a balance sheet are typically listed in order of liquidity, starting with the most liquid assets. Cash is the most liquid asset, followed by inventory and equipment, which are less liquid. This makes option C the correct order.

Which of the Following Presents Assets in the Correct Balance